Comment on CFPB-2013-0004-0001

Private lenders should not have protection against bankruptcy unless they only offer the same rates and payment options the federal government offers. Private lenders should send out monthly/quarterly/semester bills itemizing the balance with accrued interest, offering students the opportunity to make payments while still in school. Interest rates should be lowered, either offered at a discounted rate (government subsidizes interest for the life of the loan) or tied to the government’s cost of borrowing. There is virtually no bankruptcy protection, the government will get paid back, 6.8% for Stafford and 7.9% for PLUS are unconscionable. Current home mortgage rates are 3.5%. The government must stop interest capitalization. The rates are too high but charging interest upon interest is making these balances unmanageable.